Professor Perri
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A salesperson?
Advertising?
Public relations?
Buying an ad in the yellow
pages?
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Marketing: the process of exchanging
something of value, usually money, for
something you “need” or “want”
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Key concepts:
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Needs
Wants and demand
Value
Satisfaction
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In performing activities directed at
meeting people’s needs – pharmacists
play the role of a personal marketer:
 Dispensing, OTC counseling, counseling patients, teaching
pharmacy students, performing a pharmacotherapy review
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But, there is a mindset - “I am a health
care professional, not a fast talking used
car salesman.”
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 Should HC be advertised?
▪ How do you know if you need surgery? You certainly don’t learn this from an
ad. What about needing Nexium? Can you, should you, learn this from an
ad?
 Credibility and experience
▪ Do YOU want to be the FIRST your surgeon operates on?
 Many patients have limited ability to differentiate
services and products
▪ Perhaps because we don’t make the patient’s experience remarkable?
 Hard to maintain quality encounter to encounter
▪ Some patient experiences go better than others.
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 People and groups other than pharmacists are in control of
pharmacy.
▪ PBMs, Corporations, Government
 We tend to focus too much on the prescription and not on
the “service” component (counseling) that is of most value
to the patient.
 Balancing clinical and business roles.
 “The most trusted professional…..”
▪ While this is true, people must expect very little.
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And the pharmacist shortage may be nearly over…
 Changes in staffing and customer service
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New technology and services
Transient communities
 1 in 5 customers move every year
 College town?
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Patient perceptions
 I just love… [insert your favorite doctor, pharmacist, pharmacy] …and there is
someone whose experience is quite different.
 Should pharmacists be able to influence this perception….?
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Advertising = providing information
Pharmacists = provide information
So,
▪ It should be apparent we need to get the word out.
▪ Recognize there will be differences in the way customers
perceive advertising information.
▪ Need to pay close attention to our “marketing
philosophy.”
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TOMA, but for whom?
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Markets, market segments and target markets, more on this in a couple
minutes, but first:
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Product Orientation
 What do you have to sell
– then sell it.
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Marketing Orientation
 Find out what people
need – then create
products to satisfy these
needs.
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COMPANY
PRODUCT ORIENTED
MARKET ORIENTED
AOL
WE PROVIDE ONLINE
SERVICES
WE CREATE CUSTOMER
CONNECTIVITY, ANYTIME
ANYWHERE
HOME DEPOT
WE SELL TOOLS AND HOME
REPAIR EQUIP
WE PROVIDE ADVICE AND
SOLUTIONS
NIKE
WE SELL SHOES
WE HELP PEOPLE
EXPERIENCE COMPETITION,
WINNING
REVLON
WE SELL COSMETICS
WE SELL MEMORIES,
HOPES, DREAMS
WAL MART
WE RUN DISCOUNT STORES WE DELIVER LOW PRICES
EVERYDAY
GREYHOUND BUS
WE MOVE PEOPLE FROM
POINT A TO B
WE BRING PEOPLE
TOGETHER
B&O RAILROAD
WE MOVE MATERIALS
EVEN WARREN BUFFET
COULDN’T HELP THE RAILS!
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Develop marketing plan
 This is a business plan that maps out an overall
strategy on how we will reach and meet our
customers needs, better than the competition.
 Basically, how we will become “Remarkable”
 Bottom line, must determine how to manipulate
the 4 P’s and 4 I’s to maximize customer
satisfaction.
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Strengths
Weaknesses
Opportunities
Threats
Resource
Analysis
Set Marketing
Goals
Develop
Marketing
Strategy
Evaluation
Implementation
The Marketing Process
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Market summary
Define your product and set marketing goals
Identify and select target markets
Establish competitive advantages
Design and implement marketing strategies
Evaluate success, revise and adjust plans
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Setting the stage:
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▪
▪
▪
▪
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Strengths and weaknesses
Opportunities and threats
Legal considerations
Social, ethical, political issues
New technology
What is it that you think customers want the most?
Is there anything about your idea, practice site,
pharmacy that is remarkable?
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Market: past, present, & future
 Review changes in economic, political, legal
issues, market share of competitors, other players,
market shifts, costs, pricing, SWOT, etc.
Number
of
customers
Early Adopters/
Pioneers
Mass Market/
Followers
End of Life
Time
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The competitive
landscape -SWOT
 Provide an overview
of product
competitors, their
strengths and
weaknesses
 Position each
competitor’s product
against new product
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Your
Practice
STMH
Price
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D
C
Performance
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Individual’s
Personal
Characteristics
Situational
Factors
Customer
Satisfaction
Product
Quality
Price
Service
Quality
Factors Affecting Customer Satisfaction:
Does this product/service make them
happy and solve their problems?
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Describe product/service being marketed
 What exactly is our product?
▪ Think about this: When you go to buy a hair dryer – what are
you really buying? Better looking hair, not a heat gun.
▪ What are you buying when you purchase a prescription?
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Determine the objectives we wish to reach
 Number of patients per month?
 Dollars of revenue?
 Some measure of patient satisfaction, improved
outcomes, quality of life?
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A process of:
 Identifying customer needs
 Figuring out just who your customers are
 What do they have in common
 How can you meet these customers’ needs
 Assessing and comparing various customer
groups to see who you want to “target”
 Though Question:
▪ “You can’t be all things to all people, or can you?”
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Market
 All those who might need pharmacy care.
Segment
 Groups with similarities
 Demographics
 Psychographics
 Lifestyle
 Pediatric, diabetes, HRT, gerontology, ambulatory
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care, lipids, asthma, allergy
Target Market
 Segment identified on which you wish to focus your
marketing efforts.
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Homogeneous
 Group with similar needs, wants and demand
Accessible
 Can be reached with available advertising
Durable
 Will continue to be profitable in the future
Measurable
 You can learn about needs, tastes and preferences
easily
Substantial
 Is a large enough group to justify entry into the
market.
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Who is the target market for your
immunization program?
 Travelers? Yearly flu-shots? Child & adolescents?
▪
▪
▪
▪
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Homogeneous?
Accessible?
Durable?
Measureable?
Substantial?
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HCTZ vs. Geodon®
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The 4 P’s of product
marketing
 Price
▪ level, value, convenience
 Place
▪ Convenience, hours, delivery,
charge, decor
 Product
▪ Assortment, advice,
satisfaction
 Promotion
▪ Product v. image oriented
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The 4 I’s of service
marketing
 Intangible
▪ It is a perception
 Inseparable
▪ Tied to the bottle of pills
 Not Inventory
▪ How many counseling sessions
do you have in you today?
 Individualized
▪ Each patient encounter is going
to be different – the patient
and you
Philip Kotler, Marketing Professional Services
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Wholesale and retail issues
3rd Party Reimbursement Prices
 AWP, WAC, MAC, FUL, Cost-to-dispense, Professional fee, delivery fee,
administrative fee, generic incentive, acquisition cost?
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Cash price
Competition
 Walmart $4
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Insurance co-pay’s and price
Credit
 Visa, MC, Amex, Discover, in house credit accounts, discount cards
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Convenient location
Customer access to the pharmacy / pharmacist
 Is on-line a consideration?
 Is this even a “place” issue?
 What about phones? (i.e., CVS Rapid Refill)
 Attractiveness of the:
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 External store
 Location
 Layout inside the store
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Delivery (and maybe even mail delivery)
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Possible Pharmacy Care
Clinic sites examined in
2001
Sketchy
$$$
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 1500 square feet
 Lab
 Business office
 Waiting area
 Lavatory
 Storage
 3 patient exam / education rooms
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What is our product?
How do customers see it?
Is “product” the same for
everyone?
Think about needs, wants
and demand, how do these
fit with prescriptions?
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Tangible
“Bottle of pills”
Coke
Cars
Cosmetics
Advertising
Teaching
Patient Counseling
Less Tangible
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Some experts claim you don’t have a fixed
amount of “service” on the shelf in the
pharmacy.
 However, many pharmacists disagree and think there is a limit to how many
patients you can counsel in a day of work. It has been suggested to limit
pharmacist’s work day to about 120-140 Rx’es working with a single tech.
 http://www.usalaw.com/articles/pharmacist-pharmacy-errors/pharmacistworkload---north-carolina-board-of-pharmacy.php
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But it is true there is no fixed limit, and
technically, they can’t be counted.
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Advertising, public relations, personal selling and in-store promotions.
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Sell more existing product/services to current customers
 Market penetration
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Sell existing products to new customers
 Market expansion
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Sell new products to existing customers
 Development
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Sell new products to new customers
 Diversification
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The strategy you choose, will impact the decisions you make
with regard to the 4P’s and the 4 I’s
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Strategy & execution
 Overview of strategy
▪ Utilize existing patient base for office based appointments
▪ Advertise to community for health screening activities
 Overview of media & timing
▪ Newspaper, radio and cable TV ads
 Overview of ad spending
▪ $10K for 30-60 day campaign, with LIMITED newspaper ads (30
spots on cable = $3000, 1 small ad in newspaper could cost ½ of
that!)
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Strategy & execution
 PR strategies
 PR plan highlights
 Have backup PR plan including editorial
calendars, speaking engagements, conference
schedules, etc.
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Direct marketing
 Sales calls to other physicians / groups
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Third-party marketing
 Co-marketing arrangements with other
companies
▪ US Wellness
▪ Novartis
▪ State DHR
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Social Media
 Is not the traditional unidirectional broadcast
paradigm that most marketers are used to. Use of
social media means you must understand how to
listen to and engage with users, continually
optimize and refine your message, and rapidly
adapt to changing technical and legal realities.
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Social Media
 Listen
▪ Twitter, Facebook
▪ Keyword searches to identify blogs, wiki, information
about the competition, industry, etc.
▪ Both positive and negative: Actress, Jenny McCarthy
claimed her child became autistic as a result of a
vaccination. True? False? Does it matter?
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 Engage
▪ You want to
make sure you
control your
content.
▪ Monitor rogue
content.
▪ Discussion
groups…
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Engage:
 Tools like Facebook, Twitter and YouTube provide great
platforms to listen and engage people in discussions.
 Unlike traditional broadcast advertising, social media
allows marketers to measure the audience, and in some
cases, the actual conversions that result from a campaign.
 Interactions on Facebook and other channels often are
accompanied by rich and detailed user profiles. Marketers
have visibility into the demographics, interests, and
histories of individual users on those channels.
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Depends on the product/service balance
For any given product, there will be a unique
product/service mix and decisions need to be
tailored to each situation.
Consider how decisions will be different for
each of the following:
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An OTC bottle of Geritol®
The 33rd refill of a patients HCTZ
A new prescription for Lipitor®
A new prescription for Lortab®
First time oral contraceptive prescription
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The best product mix decisions are the ones
that meets our target market’s needs.
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 Lots of questions to ask:
▪ When do we start?
▪ Promotion budget
▪ Detailed budget information
▪ Will billing strategy be in place?
Phase 1
Phase 2
Phase 3
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Apr
May
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July
Sep
Oct
Nov
Dec
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First year, second year, etc. goals
 Numbers are good.
 Specific, measurable and realistic?
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Economic measures of success/failure
Requirements for success
 Personal satisfaction?
 Financial considerations?
 Patient health, contribution to the community and
society?
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18-month schedule highlights
Timing
 Isolate timing dependencies critical to success
Task 1
Task 2
Milestone
Task 3
Task 4
Jan
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Feb
Mar
Apr
May
Jun
July
Sep
Oct
Nov
Dec
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Hope you have a great spring break!
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